When Is the Canadian Taxes Due Date?

If You're Self-Employed, the Date Is Different

When are My Business Taxes Due?. Image (c) Erik Palmer / Getty Images

Question: When is the Canadian taxes due date?

Answer:

The Canadian taxes due date depends on how your business is structured.

Sole Proprietorships and Partnerships

If your business is a sole proprietorship or partnership you declare your business income on form T2125, which is part of the T1 Personal Income Tax Return. Do You Need to Fill Out Canadian Income Tax Form T2125?

You have until June 15th to file your Canadian income tax.

But beware! Even if you're not filing your income tax until June 15th, though, you still need to pay any income tax due by April 30th, to avoid income tax penalties

Note that you can choose to have a business fiscal year other than December 31. To do so you apply to the Canada Revenue Agency (CRA) by filling out Form T1139, Reconciliation of Business Income for Tax Purposes. Approval is not guaranteed though. If you are in a partnership, all partners must choose the same fiscal year end. 

If you do decide to use a business fiscal year end other than December 31st filing your taxes becomes more complex. Regardless of your business fiscal year end, the due date for your personal tax return is still June 15th and any taxes owed must be payed by April 30th, so if your business fiscal year end is not December 31st you must combine parts of the two business fiscal years, which may require estimating your income from your year-end to December 31.

For this reason most sole proprietorships and partnerships choose a December 31st fiscal year end.

Corporations

If your business is a corporation you can choose any date for your fiscal year end. If the corporation has a balance owing on its corporate income tax, for most corporations, that tax balance must be paid within two months after the end of the tax year (the fiscal year end), except for Canadian-controlled-private corporations, that may have three months to pay their income tax balance if certain conditions are met.

See How to File Corporate Income Taxes in Canada for more information.

In addition to federal business taxes you must pay provincial taxes in each province and territory. With the exception of Quebec and Alberta, provincial corporate taxes are administered by the Canada Revenue Agency and included on the federal tax return. Depending on where your business resides, use one of the following schedules to help you calculate your provincial/territorial taxes:

Schedule 427, British Columbia Corporation Tax Calculation

Schedule 383, Manitoba Corporation Tax Calculation

Schedule 366, New Brunswick Corporation Tax Calculation

Schedule 307, Newfoundland and Labrador Corporation Tax Calculation

Schedule 461, Northwest Territories Corporation Tax Calculation

Schedule 346, Nova Scotia Corporation Tax Calculation

Schedule 481, Nunavut Corporation Tax Calculation

Schedule 500, Ontario Corporation Tax Calculation

Schedule 322, Prince Edward Island Corporation Tax Calculation

Schedule 411, Saskatchewan Corporation Tax Calculation

Schedule 443, Yukon Corporation Tax Calculation

If your place of business is in Alberta see the Corporate Income Tax section of the Treasure Board and Finance website for the appropriate forms for Alberta provincial taxes. For Quebec visit the Corporate Income Tax Return section of the Revenue Quebec website for corporate tax return forms and information. Filing and tax payment deadlines are similar to the CRA requirements.

What If My Business Did Not Make Money and Owes no Taxes - Do I Still Have to File a Return?

If your business is incorporated you are required to file a T2 tax return every year regardless of whether your company has tax payable or not. 

For sole proprietorships and partnerships you must file an individual return regardless of whether you had any business income to report. However, if your business is active you should fill in and include form T2125 with your personal tax return. Even if your business had no revenue you may have incurred business expenses, thereby generating a business loss which can be written off against personal income. For example, in addition to your regular job you start a small business on the side and in the first year (or few years) your business does not generate income but has startup expenses. These expenses can be written off against the income from your regular job. Note that there are limits to this, though. See 10 Red Flags That Will Get Your Canadian Small Business Audited.

For information on filling out your first business income tax return see Your First Business Income Tax Return.

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